Travellers hoping that airfares will ease soon may be disappointed. Delta Air Lines, the first major US carrier to report third-quarter results, cut its 2026 profit forecast on Friday, October 9, because of a $6 billion jump in its annual fuel bill — but its chief executive said the higher fares passengers have been paying are likely to stick.
Fuel costs bite
Jet fuel prices have surged since the war involving Iran disrupted oil flows through the Strait of Hormuz. US airlines spent nearly $43 billion on fuel in the first eight months of the year, $13.2 billion more than in the same period of 2025.
Delta now expects adjusted earnings of $5.10 to $5.60 a share for 2026, down from the $6.50 to $7.50 it forecast in July. The midpoint is slightly below analysts’ average estimate. The airline’s shares slipped about 1% in midday trading, though they remain up nearly 18% this year. Delta is somewhat cushioned by owning its own refinery in Pennsylvania, bought in 2012.
Higher fares look set to stick
Chief executive Ed Bastian said Delta has raised prices by roughly 20% this year and that those increases could hold even if fuel prices fall. Demand remains strong for now:
- About 60% of Delta’s fourth-quarter flights were already booked.
- Bastian said holiday bookings remain strong.
- Premium-cabin revenue rose 18% from a year earlier, and average premium ticket prices across major airlines are up 11%, according to the Airline Reporting Corporation.
The picture is less rosy for budget-conscious travellers. University of Michigan survey director Joanne Hsu said sentiment among lower-income consumers “dropped steeply this month,” and a Deloitte survey in May found that 51% of Americans earning under $100,000 would cut travel among their first expenses.
New routes for 2027
Delta also announced new international routes starting next year: Seattle–Tokyo, Boston–Venice and Austin–Paris.
How to save on flights this season
- Book holiday trips early. With most fourth-quarter seats already sold, the cheapest fares are disappearing.
- Be flexible on days. Midweek departures and returns are usually cheaper than Fridays and Sundays.
- Read the fare breakdown. Fuel surcharges and bag fees have risen on many carriers; compare total trip cost, not just the headline fare.
- Use price alerts. Fare-tracking tools can flag dips on specific routes.
- Consider alternative airports and connecting itineraries, which can undercut non-stop prices.
United Airlines reports its results on October 20, which will offer another read on whether high fares and strong demand can continue to offset the cost of fuel.